P2P Lending vs. The Big Six Banks: A Canadian Showdown

Canadians are fiercely loyal to their banks—sometimes to a fault. When it comes to borrowing money, loyalty to the "Big Six" (RBC, TD, Scotiabank, BMO, CIBC, National Bank) might be costing you money. Let's compare them with the challenger: Peer-to-Peer (P2P) Lending.

Speed and Convenience

Banks: fast if you have a pre-approval offer. Slow if you have to make an appointment, go into a branch, and bring piles of paperwork. P2P (goPeer): 100% online. You can apply from your couch in your pajamas. Apply here to see for yourself.

Approval Criteria

Banks: Rigid "black box" algorithms. If your credit score is 649 and their cutoff is 650, you're often out of luck. P2P: Holistic view. Investors look at your job stability, education, and cash flow. They often fund people the banks reject.

Interest Rates

Banks: Standard rates can be high for unsecured personal loans unless you have impeccable credit. P2P: Rates are competitive and tiered based on risk. Because the platform takes a smaller cut than a bank with physical branches, savings are passed to you.

Product Variety

Banks do win on variety (mortgages, investments, insurance). But P2P platforms are specialists in unsecured personal loans.

• Need a Mortgage? Stick to a broker or compare Mortgage rates here.
• Need a Business Loan? Banks are tough on small biz. Try Alternative Business Lending.
• Need a Personal Loan? goPeer is the winner for flexibility.

Conclusion

If you have perfect credit and a great relationship with your bank, check them first. But for the vast majority of Canadians, comparing with a P2P lender is a smart financial move that costs nothing to check.